Page 244 - Demo

Significant Accounting Policies forming Part of the Financial Statements
for the year ended March 31, 2020
A disclosure of contingent liability is made when there is:
i) a possible obligation arising from a past event, the existence of which will be confirmed by occurrence or non-occurrence of one or more uncertain future events not within the control of the Bank; or
ii) a present obligation arising from a past event which is not recognised as it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets, if any, are not recognised in the financial statements since this may result in the recognition of income that may never be realised.
3.14 Cash and Cash equivalents
Cash and Cash equivalents includes cash in hand (including balance in AtM), balances with RBI, balances with other Banks and money at call and short notice. Cash and Cash equivalents for the purpose of Cash Flow Statement comprises of Cash at Bank and in hand and short term Investments with an original maturity of less than three months.
3.15 Proposed dividend
proposed dividend / declared after the balance sheet date is accrued in the books of the Bank in the year in which the dividend is declared.
3.16 Transactions Involving foreign exchange
All transactions in foreign currency are recognised at the exchange rate prevailing on the date of the transfer.
Foreign currency monetary items are reported using the exchange rate prevailing at the Balance Sheet date.
non-monetary items which are measured in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction. non-monetary items which are measured at Fair Value or other similar value
denominated in a foreign currency are translated using the exchange rate at the date when such value is determined.
exchange differences arising on settlement of monetary items or on reporting of such monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expense in the year in which they arise.
242 | AnnuAl RepoRt 2019-20